Cash-squeezed customers searching for food bargains drive Costco’s 3rd-quarter results higher

 

SEATTLE (AP) – Costco Wholesale Corp. reported a 32 percent jump in its fiscal third-quarter profit Thursday, topping Wall Street expectations, as cash-squeezed customers flocked to its warehouse clubs in search of bargains on food and toiletries.

Sales increased 13 percent to $16.26 billion from $14.34 billion in the year-ago period. Including membership fees, revenue rose to $16.61 billion from $14.66 billion.

Cash-squeezed customers searching for food bargains drive Costco’s 3rd-quarter results higher

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5 Responses to “Cash-squeezed customers searching for food bargains drive Costco’s 3rd-quarter results higher”

  • guestaswell:

    And while they are there they pick up a take & bake dinner, a large bag of chicken breasts, 10 pounds of spaghetti and, 5 pounds of hamburger & Hamburger Helper or some variation of organic prepared boxed dinner. The point is these stores already have all the foot traffic they need and the while the shopper is there, they pick up the other things hmmm…. the enchilada’s look good so does the pre-cooked beef roasts, the rotisserie chickens and frozen or deli mashed potatoes.
    The shoppers thought process goes something like this…..no need to stop at the MA, or McDonalds now, I have dinner for the next couple of nights…one stop shopping, now I can go home put dinner in the microwave or oven and in 15-20 minutes dinner is done.

  • lostdder:

    I was at Costco today, I can now pick up all my groceries plus marinated meat to grill, all kinds of different pastas in different sauces, fish, chicken dishes, whatever for a month and its all done for me at one stop. This is the downfall of the meal assembly, stores have responded with their own premade meals, Trader Joe’s has delicious entrees in their freezers and fresh in their refrigerator.

  • allthingsculinary:

    Yes, they do, I fell in foodie lust with TJ’s when we lived in California, was fortunate enough to have one close by when we lived in Philly, but now we’re in the Cleveland area-unfortunately for us Joe’s is 20 miles away, thus a special trip, thus we don’t go.
    But you are right lostdder-gtocery stores ARE part of the major reason why MA will never be more that a niche market business. A boutique business at best, in small markets that have no competition.

  • Clued in Shopper:

    >> “And while they are there they pick up a take & bake dinner, a large bag of chicken breasts, 10 pounds of spaghetti and, 5 pounds of hamburger & Hamburger Helper or some variation of organic prepared boxed dinner.

    The shoppers thought process goes something like this…..no need to stop at the MA, or McDonalds now, I have dinner for the next couple of nights…one stop shopping, now I can go home put dinner in the microwave or oven and in 15-20 minutes dinner is done.” <<

    Guilty as charged! That’s been my routine for many months now. For example, just yesterday at Costco, I picked up the materials to make 4 different kinds of uber-quickie pasta meals; 3 different kinds of quick bake-or-grill chicken breast meals; a pre-made stuffed zucchini meal; a rotisserie chicken who’s leftovers will also make a great chicken salad for wraps or sandwiches; , a pre-made, ready to grill stuffed steaks meal; plus a bag of heat and eat salmon burgers, to be topped with an all-Costco-ingredients Pesto mayo with Sun-Dried Tomatoes. I also picked up some fresh veggies and pre-cut fruit.

    That’s 12 meals with plenty of leftovers, plus healthy produce, all for about half of what I used spend at Dream Dinners just for the much-smaller meals. And the prep and cooking time, even with shopping time, is the same or less.

    As for the excess I’ve been saving? I’ve been buying Costco stock with it, no kidding! So far I’ve made about $240 on the investment.

  • almostover:

    Unfortunately, I think Clued in Shopper is like lots of other folks. There are so many cheaper and just as good alternatives than MA. I stopped at Sam’s this morning to pick up some things for the store and it was so packed. People were lined up at the check outs. Some one scanned my things before I got to the check out lane and I asked here what is going on. she said she had no clue, it had been busy like that all weekend. In fact she told me yesterday alone they were up 16%. Ugh! It is actually a bummer for MA, but it is reality. I’ll be right here in my cute little store waiting for someone to come in.

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